The Malaysian real estate industry has reacted with relief and approval to the PERMAI Assistance Package announced by Prime Minister Muhyiddin Yassin today. The Prime Minister announced 22 initiatives that will provide RM15 billion (US$3.7 billion) of stimulus to mitigate the effects of COVID-19.
Juwai IQI Group Co-Founder and CEO Kashif Ansari said, “Our network of agents stretches right across the country. They are telling us their initial reaction is that PERMAI is a right package. It’s the right thing for the economy. We expect Malaysia’s economy to grow by 6.7 per cent in 2021, helping make up for the contraction of approximately 5.8 per cent in 2020. The Prime Minister’s PERMAI package could launch a faster than expected recovery by successfully containing the virus’ third wave and laying the groundwork for widespread vaccine provision. We expect PERMAI to encourage consumer demand and investor confidence to recover more quickly than we expected even just 12 hours ago. As a result, we may see a resurgent domestic economy this year.
PERMAI initiatives that seem likely to have a particularly good impact on the commercial real estate market are the electricity discounts, the tax benefits for rental discounts, and the stepped-up screening of foreign workers, and the Danajamin Guarantee Scheme.
Like everyone, the property industry wants Malaysians to get through this challenging period successfully. We want to see COVID-19 brought under tighter control, and we want people to keep their jobs and incomes. Most of all, we hope that, when we finally get through the pandemic, we have a bright future ahead of us.”
The government is taking decisive action to control the virus and providing support to the most vulnerable among us. The government’s three key objectives are to combat the COVID-19 pandemic, to protect the people’s welfare, and to support business continuity.
The Juwai IQI Property Survey and Index Q3 2020 found that the Malaysian real estate industry expects a strong market recovery in 2022, with 10.6% price growth through that date, despite a -4.8% fall over the next 12 months.
The COVID-19 pandemic has done more global economic damage than the Asian Financial Crisis or the Global Financial Crisis. However, the pandemic has also had a positive impact on national property markets. Asia is already leading the recovery, and we expect it to continue to do so in 2021.
